Mexico Considers Subsidies
On Home-Mortgage Loans

MEXICO CITY -- Mexico is considering another round of help for its battered banks and their cash-strapped clients, this time with government subsidies on home-mortgage loans.

As interest rates on mortgages and consumer loans soared after the December 1994 devaluation of the peso, most borrowers couldn't keep up with soaring payments. Instead of foreclosing, many banks applied past-due interest to the loans' principal. Now many...